–Economists’ Ideal Candidate: NPR put together a fake political candidate who espouses policies unpopular with the public but cheered by economists. “We assembled five prominent economists from across the political spectrum. We gave them a simple task: Identify major economic policies they could all stand behind. They did. They gave us five tax proposals — plus one change to the criminal code — based on good economics. And in the process, they gave us an economic platform that would surely sink any candidate that supported it. We decided to bring him to life anyway. Here you have him: A political candidate who could potentially fix the economy, but would never win an election.”

–Holiday Spending: The National Retail Federation expects growth this holiday season. “Tempered by political and fiscal uncertainties but supported by signs of improvement in consumer confidence, holiday sales this year will increase 4.1 percent to $586.1 billion. NRF’s 2012 holiday forecast is higher than the 10-year average holiday sales increase of 3.5 percent. Actual holiday sales in 2011 grew 5.6 percent. “This is the most optimistic forecast NRF has released since the recession. In spite of the uncertainties that exist in our economy and among consumers, we believe we’ll see solid holiday sales growth this year,” said NRF President and CEO Matthew Shay. “Variables including an upcoming presidential election, confusion surrounding the ‘fiscal cliff’ and concern relating to future economic growth could all combine to affect consumers’ spending plans, but overall we are optimistic that retailers promotions will hit the right chord with holiday shoppers.””

–Against Central Bank Action:Raghu Rajan is skeptical of more action by central banks. ” A last defense offered by advocates of continuing on the path of adventurous monetary policy, even when the perceived benefits are small, is that, because politicians refuse to settle their differences and act, monetary policy is “the only game in town.” In democracies, when there are no other alternatives, politicians often eventually do the right thing. By creating the impression that something beneficial is being done, unconventional monetary policy relieves pressure on politicians. By arguing that they are the only game in town, central bankers ensure that outcome. Central bankers nowadays enjoy the popularity of rock stars, and deservedly so: their response to the difficult and uncertain environment during and after the financial crisis has been largely impeccable. But they must be able to admit when they are out of bullets. After all, the transformation from hero to zero can be swift.”

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